All Forum Posts by: Ed J Petrus

@Sunny Burns  thanks!

I was looking on the app and didn't show the location at the top of the thread.

@Sunny Burns thank you for organizing.

Feb 27th and what is the location?

@Andrew B. thanks.  The property has been hard to comp to others in the area.  It's in a residential/commercial mixed area.  No parking.  

As-Is I think we could get 40k

After repairs - $120k seemed to be the # that realtors came in at. 

We can get around $1,600/month for renting it after repaired. 

@Ryan D.At this point, the property has been held for 2 years and costs exceeded $20k mostly due to the high HOA fees. The property also had some demo work done, materials purchased, etc.

@Account Closed thanks for the reply.  Will look into the 1031 option.  

Would you list it with a realtor or sell off market?  Unit isn't habitable as it's been mostly gutted. 

@Amul Sutaria  Sent you a PM.

@Odie Ayaga  I don't have an exact number in mind.  I would like to continuously flip while acquiring rental properties.  I'd like to do at least one this year.  

I see you're near Philly.  Do you have any business up my way? 

I'll try to keep a long story short here but I need some opinion on how to exit investment gone south:

A family member (A) purchased a property for another family member (B).  The intention I believe was to fix, move in, and sell their current house and pay back family member A.  Family member B didn't complete the repairs, stopped paying some of the bills, etc.  It is almost 2 years since the purchase.  Family member B is now out of the picture now and I'm trying to help my family member A who actually owns the property.

The property was a condo 4 bedroom / 1 bath foreclosure in a 6 family building.  Purchased for 40k cash.  I'm a general contractor and the property needed a decent amount of work.  I thought if the repairs were kept minimal and done quickly the deal could work.  As of now, the property has been in holding too long and some contractors that were hired did too much demo. So now it would need even more capital to repair. 

At this point I estimated 60k for repairs to do the work and get paid for it as a contractor.  

ARV of this property I believe is around $120k. I've had 3 realtors look at it and they seem to give a range of $120-$150k. However, there are no comps as this is a unique property type. Most condos in the area are townhouses with many amenities and go for $225k. Other similar size properties are houses with yard, driveway etc. The realtors all had challenges pulling comps.

This condo has no parking, high HOA fees ($400/month), and overall building needs updating. Which could make for a tough sell.

Right now my family member wants to sell as is and not have the headache but I'm curious if there is a creative way to solve the problem.  

Right now we are under water around 70k.  If we put in the 60k repairs and sell for 120k, we are -10k.

Possible to rent it out and refinance?  Any other creative ways to exit this situation?

Please let me know your thoughts and if you need more information.

Hello BP,

I'm a general contractor from Bergen County NJ and have always had an interest in real estate.  In the past I've done property management and had my NJ real estate license (now inactive).  I've been reading the forums, blogs, and podcasts here for a while and finally decided to post. 

My short term goal is to rehab a property. I would like to eventually use BRRR and build a portfolio of rental units.

I'd like to invite you all to connect.

Thanks,

Ed Petrus